Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Palo Alto Networks Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).
- Current Ratio
- The current ratio exhibits a general downward trend from October 2018 to early 2022, declining from 2.1 to a low point near 0.66 by January 2022. This indicates a reduction in the company's short-term liquidity during this period. Following this decline, the ratio fluctuates modestly but shows a gradual recovery trend from around 0.64 in early 2023 to approximately 0.9 by April 2025. Despite the recovery, the current ratio remains below the initial levels observed in 2018, suggesting a tighter liquidity position in recent years.
- Quick Ratio
- Similar to the current ratio, the quick ratio declines steadily from 1.98 in October 2018 to a trough near 0.62 in early 2022. This decline reflects a diminishing ability to quickly meet short-term obligations without relying on inventory sales. After reaching the low point, the quick ratio trends upward slowly, improving to around 0.83 by April 2025. This pattern indicates some recovery in near-liquid assets relative to current liabilities, though it remains significantly lower than the levels seen in 2018.
- Cash Ratio
- The cash ratio also shows a notable decrease from 1.76 in October 2018 to roughly 0.45 in early 2022, indicating a substantial reduction in cash and cash equivalents relative to current liabilities. Following this decline, the cash ratio experiences minor fluctuations but lacks a consistent upward trend, mostly stabilizing between 0.3 and 0.5 through early 2025. This suggests a constrained cash availability in relation to short-term liabilities, with no significant recovery observed compared to the initial levels.
- Summary
- Across all three liquidity metrics—the current, quick, and cash ratios—there is a clear pattern of decreasing liquidity from late 2018 through early 2022. This downward movement reflects a progressively tighter short-term financial position. While the current and quick ratios demonstrate moderate recovery starting in 2023, the cash ratio remains relatively flat, indicating limited improvement in immediate cash reserves. The data overall suggest increased constraints on liquidity, with the company potentially becoming more reliant on non-cash current assets or restructuring its short-term liability management during the most recent periods.
Current Ratio
Palo Alto Networks Inc., current ratio calculation (quarterly data)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current assets
- Over the reported periods, current assets exhibit significant fluctuations. Starting at approximately 3.82 billion USD in late 2018, the value shows a general upward trend with intermittent declines, notably around early 2020 and mid-2023. The peak appears in mid-2022 with current assets reaching approximately 6.41 billion USD, followed by a slight decrease yet maintaining high levels above 6 billion USD through mid-2024. Overall, the current assets increased considerably over the span of the data, suggesting growth in the company's short-term resources.
- Current liabilities
- Current liabilities generally increased throughout the period. Beginning at roughly 1.82 billion USD in late 2018, there is a clear upward movement, reaching a notable surge in early 2021 with liabilities exceeding 4.3 billion USD and peaking significantly around late 2021 at approximately 7.14 billion USD. The liabilities remain elevated in subsequent periods, fluctuating mostly between 7.4 and 8.6 billion USD, indicating an increase in the company's short-term obligations over time.
- Current ratio
- The current ratio reveals a downward trend over the period in review. Initially strong at 2.1, the ratio declines gradually, with several periods slipping below 1, notably in early 2021 and late 2021, indicating that current liabilities exceed current assets during these times, which can point to potential liquidity concerns. After reaching lows around 0.66 to 0.7 in early to mid-2022, the current ratio stabilizes somewhat, fluctuating near 0.8 to 0.9 in the most recent quarters. This trend suggests decreasing liquidity and a possible strain on the company's ability to cover short-term liabilities with current assets, despite the growth in absolute asset and liability values.
Quick Ratio
Palo Alto Networks Inc., quick ratio calculation (quarterly data)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Accounts receivable, net of allowance for credit losses | |||||||||||||||||||||||||||||||||||
| Short-term financing receivables, net | |||||||||||||||||||||||||||||||||||
| Short-term deferred contract costs | |||||||||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets exhibit a fluctuating pattern with an overall upward trajectory across the periods. Initial values around 3.58 billion US dollars in late 2018 decline somewhat in early 2020, hitting a low near 2.71 billion in April 2020. Subsequently, there is a marked recovery and growth, peaking above 6.37 billion US dollars by October 2024. This indicates improved liquidity resources over time, despite short-term volatility.
- Current Liabilities Trend
- Current liabilities show a generally increasing trend with some variability. Starting at approximately 1.82 billion US dollars in October 2018, liabilities rise steadily, reaching a peak around 8.47 billion US dollars by July 2023. Following this peak, liabilities decline somewhat but remain elevated above 7.4 billion US dollars through October 2024. The trend indicates growing short-term obligations, which may increase pressure on liquidity if not matched by asset growth.
- Quick Ratio Analysis
- The quick ratio, representing the company's ability to meet short-term liabilities with liquid assets, shows a downward trend from 1.98 in October 2018 to a low point around 0.58 in January 2023. This decline suggests decreasing short-term liquidity relative to liabilities. However, from early 2023 onward, there is a modest recovery, with the ratio increasing to approximately 0.83 by October 2024. Despite this improvement, the ratio remains below 1 for most periods after 2019, signaling potential liquidity concerns.
- Overall Insights
- The data indicate that while total quick assets have increased substantially over the analyzed timeframe, current liabilities have grown at a faster pace, leading to a generally declining quick ratio. This trend reflects increasing short-term financial obligations outpacing the growth in liquid assets until early 2023, when liquidity conditions appear to improve slightly. The sustained quick ratio below 1 in recent years may warrant further attention to liquidity management to ensure obligations can be met without operational disruption.
Cash Ratio
Palo Alto Networks Inc., cash ratio calculation (quarterly data)
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets show notable fluctuations over the observed periods. Initially, cash assets decreased from approximately 3,203,800 thousand USD in October 2018 to a low point near 2,038,800 thousand USD by April 2020. This decline is interspersed with episodes of recovery, most prominently a peak increase to about 3,747,800 thousand USD in July 2020. Following July 2020, the overall trend shows moderate volatility, with cash assets generally maintaining levels between roughly 2,500,000 and 3,900,000 thousand USD. However, there is a visible downward movement in several quarters, especially moving towards the later periods, where the assets hover closer to the mid-range of the earlier values rather than reaching peak levels again.
- Current Liabilities
- Current liabilities have exhibited a consistent upward trend throughout the periods. Starting at 1,815,700 thousand USD in October 2018, these liabilities increased significantly, surpassing 7,500,000 thousand USD by the most recent quarters. A pronounced spike is observable around the period from January 2021 to October 2021, where liabilities jump from about 3,000,000 to over 7,000,000 thousand USD, indicating a substantial increase in short-term obligations. Subsequent periods continue to show high liability levels, fluctuating around the 7,000,000 to 8,600,000 thousand USD range, reflecting a sustained rise compared to the initial time points.
- Cash Ratio
- The cash ratio demonstrates a declining pattern over the entirety of the data set. Initially, the ratio was relatively strong at 1.76 in October 2018, indicating that cash assets were significantly higher than current liabilities. Up to early 2020, the ratio generally remains above 1 but begins to decrease sharply around April 2020, falling to 0.87, and continues a downward trend thereafter. Between July 2020 and the middle of 2021, the ratio declines further to below 0.6, with intermittent small recoveries. From late 2021 through 2025, the cash ratio remains below 0.5, at times falling to approximately 0.3, which implies that cash assets have consistently been less than half of current liabilities during this period. This trend suggests increasing liquidity risk or a change in cash management strategy, with cash resources becoming more limited relative to short-term obligations.